LEGISLATIVE TRACKING REPORT MAY 11, 2005
As of May 11th, Maine Bankers Association has testified on or otherwise participated in the debate on more than 120 pieces of legislation. While many of these banking-related LDs have been decided, at least half of these 120 LDs still are working their way through the process. There have been more than 1,670 LDs printed to date, and the Legislature has taken time for extensive debate on Tax Reform proposals, the Governor’s budget and few other key political issues. They hope to adjourn in Mid-June, with 4-5 weeks left to vote on the balance of all remaining issues!
This report updates all interested bankers as to the status of the major LDs that have been identified as impacting banking.
BANKING-RELATED LAWS ENACTED INTO LAW
(NOTE: LD 1, Tax Reform, and LD 468, the Governor’s Budget, and LD 413, the so-called Gay Rights legislation, have all passed the Legislature and have been signed by the Governor. There are several provisions within these LDs, especially the Governor’s budget that impact banks and businesses, including Part DDD, which did NOT include the Superlien provision opposed by MBA, and did include the Q-tip Trust provision which we supported. LD 1264, which proposed the Q-tip conformity provision, was withdrawn as a result of this being included in the budget.
Public Law 46 (2005), LD 464, AN ACT to Prohibit Certain Uses of a Financial Institution’s Name (MBA Supported). Under most circumstances, insurance solicitations cannot use the name of a financial institution without their express written permission.
Public Law 55, LD 338, AN ACT to Clarify the Applicability of the Maine Consumer Credit Code to Affordable Housing Organizations (MBA Supported). Allows Habitat for Humanity to offer interest free payments by owners of one their homes without certain terms under the Consumer Credit Code.
Public Law 62, LD 491, AN ACT to Cure an Inconsistency Regarding Judgment Liens, (MBA supported). As title states, this technical amendment clarifies Maine’s judgment lien law.
Public Law 65, LD 509, AN ACT to Adopt the Maine Uniform Securities Act (MBA supported). This 94-page Law adopts the Uniform Securities Act into Maine law. MBA participated in a summer study during 2004 that brought together stakeholders, and these groups reached consensus as to major provisions of the Uniform law. (Has a Dec. 31, 2005 Effective Date)
Public Law 83, LD 83, AN ACT to Prohibit Payment Card Skimming (MBA Supported). This new law creates a criminal code violation for use of a “skimming device.”
PROPOSALS DEAD FOR THE SESSION:
LD 6, AN ACT to Prohibit a Credit Card Processing Company from Charging a Termination Fee - Unanimous Ought Not to Pass (MBA Opposed)
LD 41, AN ACT to Prohibit Credit Card Companies from Charging Late Fees on Certain Accounts – Unanimous Ought Not to Pass (MBA Opposed)
LD 58, AN ACT to Support Payroll Processors, and LD 208, AN ACT to Lower the Surety Bond Requirement for Payroll Processors - Unanimous Ought NOT to Pass (MBA Opposed)
NOTE: But see, LD 633, AN ACT to Relieve Small Payroll Companies from Excessive Regulation – which the Business Research and Economic Development Committee is holding in Committee pending further action – may be Committee Amendment with some modest revisions to Maine’s payroll processing laws.
LD 366, AN ACT to Protect Consumers by Requiring Retail Businesses to Post Complaint Contacts - (MBA Opposed). Unanimous Ought NOT to pass.
LD 414, AN ACT to Require a Credit Card to Contain the Photo and Signature of a Cardholder – Unanimous Ought Not to Pass (MBA Opposed)
LD 432, AN ACT to Increase from 90 to 120 Days the Time Frame to File Contractor Liens (MBA Opposed), but sections of this LD may be added to another lien bill before the Judiciary Committee.
LD 740, AN ACT to Amend Maine’s Non-resident Income Tax Provisions (MBA’S BILL!) – While the Tax Committee has voted Ought NOT to Pass, the provisions within this LD are included in amendments to the Non-resident income tax laws proposed within LD 236 – See LD 236.
LD 442, AN ACT to Provide Health Care Savings Accounts and Health Care Management in MaineCare (MBA supported) – but this provision is included in LD 195.
LD 507, AN ACT to Establish Individual Medical Savings Accounts (MBA Supported), while killed for the Session, it was very similar to the HSA proposal alive in LD 195.
LD 718, AN ACT to Increase the Amount of Equity in a Principal Residence that is Exempt from Attachment (MBA Opposed), was originally voted Ought to Pass as amended, with the amendment written by interested groups including MBA, but after reconsideration the Judiciary Committee voted unanimously Ought NOT to Pass.
LD 746, AN ACT to Exempt Tax on Leased Property Used by Maine’s Public Higher Education Institutions (MBA Supported). The expected cost of this change, which would provide a tax exemption on property leased by the University system, was too high for this to pass.
LDs 771 and 772, Acts Protecting Consumer’s Use of Gift Cards, both were voted Unanimously Ought Not to Pass (MBA Opposed). However, at least one provision of these LDs is preserved in LD 1084, which is held in the Judiciary Committee pending further action.
LD 948, AN ACT to Shelter IRAs from the Bankruptcy Law (MBA was Neither For Nor Against) was voted unanimously Ought Not to Pass by the Judiciary Committee.
PROPOSALS ENACTED BY HOUSE AND SENATE, AWAITING GOVERNOR’S SIGNATURE
LD 19, AN ACT to Clarify the Law Regarding Transfer Tax Liability for Deeds between Domestic Partners (MBA monitored). Allows Domestic Partners, who are registered as such, to be exempt from transfer tax liability if the deed passing the real estate is between partners (similar to married persons)
PROPOSALS CURRENTLY IN HOUSE OR SENATE PENDING VOTES
LD 159, AN ACT to Restrict Undocumented Mortgage Agreements (MBA was Neither For Nor Against original proposal, was Opposed to an Amendment) was passed out of the BRED Committee with final language very similar to original proposal, and as passed would have little impact on banks.
LD 260, AN ACT to Amend the Laws Governing Mechanic Liens, (MBA was Neither For Nor Against) was passed by the Committee requiring notice by claimants who preserve a lien by filing an action in court, to also file a certificate or copy of the complaint in the registry of deeds or direct notice to the owner. As amended, will reduce title research time for abstractors.
LD 309, AN ACT to Remove the Sunset Part-time Unemployment Insurance Benefits (MBA Opposed). This LD is pending vote in the House, on the Divided Report, and would increase costs for employers by causing additional employer contributions to the Unemployment Fund.
LD 471, AN ACT to Prohibit …. Outsourcing – (MBA Opposed) Originally would have prohibited the State from doing business with entities that may outsource work. As Amendment and as before the House, it only asks Bureau of Purchasing to Study and then list where jobs go to firms that contract with the State.
(LD 1014 also proposed same requirement)
LD 476, AN ACT to Increase the Franchise Tax on Financial Institutions, (MBA Opposes!) has been reported out of the Taxation Committee with a 7 – 6 Ought Not to Pass Report. It may be on the House Calendar for its first vote on Tuesday, May 3rd. Bankers have been asked to contact their local legislators urging them to oppose this LD, and support the Majority Report. Talking Points have been sent to contact bankers, and calls throughout the next few days will be important!
LD 587, AN ACT to Make Changes to the Banking Laws (MBA Supported), introduced by the Bureau of Financial Institutions, was a Unanimous Ought to Pass Committee Report, and should have final votes early this coming week.
LD 881, AN ACT to Amend the Maine Workers Compensation Act of 1992 to Facilitate Timely Independent Medical Examinations and Benefit Payments (MBA Monitored) is tabled in the Senate pending debate there. This Act would facilitate doctor exams by independent doctors, expanding the number of doctors who could provide certain types of exams.
LD 949, AN ACT to Enhance the Supervisory Powers of the Department of Professional and Financial Regulation, Bureau of Financial Institutions (MBA was Neither For Nor Against, but raised several needed changes) The Insurance and Financial Services Committee Unanimously passed this LD as amended, the amendments addressed several of the issues raised by MBA.
LD 963, AN ACT to Set Standard for Electronic Methods for Wage Payments (MBA monitored, and participated with parties to craft an Amendment). This proposal covers when employers pay their employees electronically, assuring that the costs of doing so are not born by the employee.
LD 1374, AN ACT to Require a Surcharge on Probate Documents (MBA Was Neither For Nor Against) will be before the House next week, and this LD proposes a modest surcharge on filing fees in Probate Court, fees that have not changed in many years and are needed to preserve aged probate documents.
LD 1416, AN ACT to Amend the Maine Consumer Credit Code, (MBA was Neither For Nor Against) was passed unanimously by Committee and should be before the House next week.
PROPOSALS CURRENTLY IN COMMITTEE:
LDs 112, and 436, both proposing to Conform Maine Estate Tax Laws to the Federal Estate Tax Laws, MBA Supported) were held in Committee after Public Hearings and Work Sessions. Though there was considerable support for these proposals, they would have fiscal notes of many millions of dollars, therefore are unlikely to pass.
LD 193, AN ACT to Strengthen Wildlife Habitat Protection, And LD 261, the Department of Environmental Protection’s Dept. bill, include a provision on “vernal pools” and how owners (and their lenders) will have to restrict building outside a 250 foot buffer zone from a vernal pool. The Committee asked MBA if this proposal would have any impact on bank lending. After research, MBA testified that YES, there would be some impact, much like for other wetland considerations. The Committee then adopted new definitions limiting the impact, and will have the DEP jointly with Inland Fisheries and Wildlife adopt Major Substantive Rules on this issue. These Rules will go back to Committee for final approval in January of 2006. LD 193 was unanimously voted Ought NOT To Pass, but the provisions within it were then included in the Dept’s LD, 261, which will be supported by Committee and sent to full House and Senate.
LD 195, AN ACT to Conform the Maine Tax Code with the Federal Health Savings Account Laws – (MBA Supported). This proposal gained great support, but does have a $550,000 fiscal note. It is currently held in Committee, an may be coupled with other Tax proposals that would net a zero dollar fiscal note.
LD 236, AN ACT to Change Nonresident Income Tax Filing Requirements – (MBA SUPPORED) A Sub-committee of the Taxation Committee met to blend this proposal with LD 740, MBA’s bill, that also proposed changes to Maine’s non-resident income tax laws. Their recommendation is to extend the number of days beyond 10, and to exempt days spent in Maine for training and education (which was in MBA’s bill.) Currently held in Committee.
LD 394, AN ACT to Create a High-Risk Pool in the Health Insurance Market (MBA Supports), combined with LD 1496, a Republican-lead proposal including high risk pools, HSAs, amendments to continuity of coverage and guaranteed issue laws, offered as an alternative to Dirigo Health, have had Public Hearings and will be carried over to 2006 .
LD 469, AN ACT to Simplify the Real Estate Foreclosure Process (MBA was Neither For Nor Against) is held in Judiciary Committee pending amendments to other lien/foreclosure legislation.
LD 475, AN ACT to Change the Allocation of the Real Estate Transfer Tax (MBA is Neither For Nor Against) represents one of 15+ LDs proposing changes to the transfer tax. Most will not pass (such as allowing a local option surcharge to this tax, payable to the county) but many are held in Committee pending study and combining certain provisions of the many different LDs. MBA opposes increases to this tax.
LD 570, AN ACT to Require the Fair Application of the Mechanic’s Lien Law (MBA was Opposed to certain provisions of this LD), would extend certain protections of the mechanic’s lien law to commercial property, and has been hotly debated among material providers, general and sub contractors, and business owners. The interested parties have agreed to an amendment, requiring more notice to parties that should pass the Judiciary Committee.
LD 581 and 956, ACTs Regarding Identity Theft Deterrnce (MBA was Neither For Nor Against, but recommended needed changes), will be amended, reflecting a compromise between major parties. The BRED Committee will pass the amended version of LD 581 in the next few days.
LD 773, AN ACT to Allow Municipalities to Collect Debts through the Placement of Liens on Property (MBA Opposed certain provisions). This LD, as amended would have created a priority lien in favor of municipalities for fees they could not collect, such as dog licensing and library late fees. After a number of groups opposed these provisions, the Committee required further amendment and study.
LD 788, AN ACT to Establish Consumer Protections and Regulations for Deferred Deposit Loans (MBA Was Neither For Nor Against, but pointed our changes that were needed). This LD proposed sweeping changes to how payday lenders were regulated, giving them preferential treatment compared to other lenders. The BRED Committee opposed most of the legislation, but did agree to have the Office of Consumer Credit Regulation study availability of credit to those who might use payday lenders.
LD 838, Amending Uniform Unclaimed Property Act as it Applies to Gift Cards, and LD 1084, AN ACT to Make Dormancy Fees on Gift Cards Illegal, are held in Committee pending additional study/amendments. MBA Opposed certain provision, and supported an Amendment offered by the State Treasurer). There is considerable controversy and opposition to many of the provisions of both LDs, and some Committee members may lean towards carrying these LDs over to the next Session.
LD 1286, AN ACT to Require Additional Disclosure Regarding Private Mortgage Insurance (MBA Opposed) has been amended so as to not be too burdensome, but there are questions unresolved as to language which will be brought back to the Committee next week.
LD 1303, AN ACT to Register Nonbank Loan Officers, (MBA Monitored) will be passed by the Insurance and Financial Services Committee in some form, and will require registration of these loan officers with the Office of Consumer Credit Regulation.
LD 1482, AN ACT to Provide for the 2005 and 2006 Allocations of the State Ceiling on Private Activity Bonds (MBA Monitored), this once controversial allocation issue is no longer challenged and this will pass out of the BRED Committee next week.
LD 1409, AN ACT to Assist in the Investigation and Prosecution of Theft Offenses (MBA Supported) was heard 4/29 by the Judiciary Committee, and proposes to allow police chiefs and D.A.’s to work on cases of theft in multiple jurisdictions, so as to result in one prosecution and possibly a larger crime classification.
LD 1532 AN ACT to Modify Liability to Protect Maine Citizens from Lead Hazards That Harm Maine Children and Families (MBA Opposed as Drafted) was heard 4/28 by the Judiciary Committee and would proposed a strict liability standard for property owners that have property that causes lead poisoning. The Committee heard hours of testimony about the dangers of lead paint, but also from opponents that testified that a strict liability standard would result in a considerable number of apartment buildings being removed from use, making worse the housing shortage.
LD 1542, AN ACT to Provide Relief to Retailers Who Have Been Issued Bad Checks, (MBA Supported) also was heard 4/29. It allows retailers to collect TWICE the amount of a bad check should it be a second offense, and also requires a uniform policy of prosecution by District Attorneys statewide.
LD 1551, AN ACT to Make Technical Amendments to the Uniform Trust Code (MBA Supported) was heard 4/29 by the Judiciary Committee and makes mostly minor changes to the UTC, which passed in 2004.
LD 1559, AN ACT to Adopt the Uniform Environment Covenants Act (MBA Supported) was heard 4/29 by the Judiciary Committee. The most important information about this LD is that it was supported by the DEP and by the Attorney General’s office, and they did NOT introduce an Amendment creating a superlien in the favor of the DEP. Work Session 5/12.
LD 1566, AN ACT Concerning Full Faith and Credit for Legal Documents Executed in Other Jurisdictions – (MBA will Monitor) was heard before the Judiciary Committee on 5/3, worked on 5/9.
LD 1576, AN ACT to Amend the Motor Vehicle Laws Relating to the Assignment of Security Interests (MBA Supports) was heard before the Transportation Committee on 5/3, where they held the Committee vote, which was Unanimous ought to pass, as Amended. Will move to the Senate floor later this week.
PUBLIC HEARINGS SCHEDULED:
LD 1638, AN ACT Concerning the Regulation of Certain Information to Protect Privacy (MBA Opposes), is Rep. Dudley’s proposal to send to public referendum the issue of whether Maine should become an Opt-in State for privacy of personal financial information.
TAX REFORM PROPOSALS… Including LD 484, AN ACT to Enact the Tax Fairness Act (would increase the sales tax, expand the types of products subject to the sales tax);
LD 705, AN ACT to Relieve the Income Tax Burden in the State through Revenue Neutral Means (increases sales tax rates on many items such as beer, wine and cigarettes);
LD 1437, Broadens the Sales Tax Base and reduces its rate(expands the sales tax to many new items, including services, and repeals sales tax exemptions on purchases of business equipment!);
LD 1587, AN ACT to Modernize Maine’s Tax Code (Charges sales tax on most services, including legal, accounting and financial planning); and
LD 1595, the two Committee Chairs proposal to “Rebalance Maine’s Tax Code”
All will be heard throughout the weeks of 5/2 and 5/9, and also includes the Governor’s Tax Reform
# 2. MBA will monitor, while joining with the Chamber and other business groups opposing expanding the tax base and increasing taxes in general.
